Wall Street has issued downbeat forecasts for the stocks in this article. These predictions are rare - financial institutions typically hesitate to say bad things about a company because it can jeopardize their other revenue-generating business lines like M&A advisory.
Whatever the consensus opinion may be, our team at StockStory cuts through the noise by conducting independent analysis to determine a company’s long-term prospects. Keeping that in mind, here are three stocks where the skepticism is well-placed and some better opportunities to consider.
Masco (MAS)
Consensus Price Target: $80.32 (6.8% implied return)
Headquartered just outside of Detroit, MI, Masco (NYSE: MAS) designs and manufactures home-building products such as glass shower doors, decorative lighting, bathtubs, and faucets.
Why Are We Out on MAS?
- Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
- Earnings per share were flat over the last two years and fell short of the peer group average
- Waning returns on capital imply its previous profit engines are losing steam
At $75.18 per share, Masco trades at 17.9x forward P/E. If you’re considering MAS for your portfolio, see our FREE research report to learn more.
United Parcel Service (UPS)
Consensus Price Target: $113.18 (-3.5% implied return)
Trademarking its recognizable UPS Brown color, UPS (NYSE: UPS) offers package delivery, supply chain management, and freight forwarding services.
Why Do We Steer Clear of UPS?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 1.3% annually over the last two years
- Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 5.7 percentage points
- Diminishing returns on capital suggest its earlier profit pools are drying up
United Parcel Service is trading at $117.34 per share, or 16.4x forward P/E. To fully understand why you should be careful with UPS, check out our full research report (it’s free).
Sherwin-Williams (SHW)
Consensus Price Target: $387.43 (7.6% implied return)
Widely known for its success in the paint industry, Sherwin-Williams (NYSE: SHW) is a manufacturer of paints, coatings, and related products.
Why Does SHW Fall Short?
- Annual sales growth of 1.1% over the last two years lagged behind its industrials peers as its large revenue base made it difficult to generate incremental demand
- Projected sales growth of 4.2% for the next 12 months suggests sluggish demand
- Earnings growth over the last two years fell short of the peer group average as its EPS only increased by 5.2% annually
Sherwin-Williams’s stock price of $360.20 implies a valuation ratio of 30x forward P/E. Check out our free in-depth research report to learn more about why SHW doesn’t pass our bar.
Stocks We Like More
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here in our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
